The Toro Company (TTC) has reported a 14 percent rise in profit for the quarter ended May 05, 2017. The company has earned $120.48 million, or $1.08 a share in the quarter, compared with $105.68 million, or $0.94 a share for the same period last year. Revenue during the quarter grew 4.34 percent to $872.77 million from $836.44 million in the previous year period. Total expenses were 81.75 percent of quarterly revenues, up from 81.46 percent for the same period last year. That has resulted in a contraction of 29 basis points in operating margin to 18.25 percent.
Operating income for the quarter was $159.30 million, compared with $155.09 million in the previous year period.
"Solid performance in both our professional and residential segments contributed nicely to the revenue growth we achieved for the quarter," said Richard M. Olson, Toro’s president and chief executive officer. "The golf equipment business continues to perform well as customers enhance their fleets with innovative turf solutions like the compact and lighter weight Reelmaster fairway mower and the Greensmaster TriFlex™ hybrid mower, which delivers the precision cutting capabilities of a walk greens mower with the productivity of a riding unit. We are also pleased by the performance of our rental and specialty construction businesses. Expanding our product lineup, particularly in the rental channels, has been successful."
For the financial year 2017, The Toro Company projects revenue to grow at 4.50 percent. The company forecasts diluted earnings per share to be $2.35.
For the third-quarter 2017, The Toro Company forecasts diluted earnings per share to be $0.56.
Operating cash flow improves
The Toro Company has generated cash of $170.43 million from operating activities during the first half, up 14.82 percent or $21.99 million, when compared with the last year period. The company has spent $49.16 million cash to meet investing activities during the first six months as against cash outgo of $23.78 million in the last year period.
The company has spent $129.77 million cash to carry out financing activities during the first six months as against cash outgo of $77.29 million in the last year period.
Cash and cash equivalents stood at $265.19 million as on May 05, 2017, up 51.85 percent or $90.55 million from $174.64 million on Apr. 29, 2016.
Debt comes down
The Toro Company has recorded a decline in total debt over the last one year. It stood at $335.89 million as on May 05, 2017, down 6.20 percent or $22.21 million from $358.11 million on Apr. 29, 2016. Interest coverage ratio improved to 34.07 for the quarter from 32.85 for the same period last year.
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